Learning Resources
 

Purchase and tender procedure


Goverment puchases are done through tendering process.

Fundamental Principle of Public buying
 (A) Procurement of goods in Public Interest for

  • Efficiency
  • Economy
  • Transparency

(B) Fair & Equitable treatment of suppliers        

(C) Promotion of Competition


PUBLIC PROCUREMENT : YARDSTICKS

  • Specifications in terms of quality
  • Need based procurement (avoid excess)
  • Fair, Reasonable & Transparent procedure
  • Procurement Vs Requirement
  • Reasonableness of Rate
  • Each stage of procurement should be recorded



GFR: Rule 145

  • Purchase of goods without quotation
  • Value upto 15000/-
  • Each occasion

Certificate to be recorded by the competent Authority –

   “I,------ am personally satisfied that these goods purchased are of the requisite quality and specification and have been purchased from a reliable supplier at a reasonable price.”


GFR: Rule 146

  • Purchase of goods by
  • Purchase Committee
  • >15000/- and upto 1Lac on each occasion
  • Three members Committee as decided by the HoD

Committee’s responsibilities

  • Market Survey
  • Reasonableness of Rates
  • Quality & Specifications
  • Identify appropriate supplier
  • Joint Certificate by the Committee


Purchase of goods by obtaining bids(Tendering)
Ministry / Departments of Govt. of India have been delegated full powers to make their own arrangements for procurement of goods
Rule 141 of GFR says about Central Purchase Organisation (e.g. DGS&D) RATE CONTRACT


Types of Tender
In broader terms there are three types of tender : -
1. Open Tender

  • Tender value >= 25 Lac
  • Ad in Indian Trade Journal(ITJ)
  • At least one National Daily having wide circulation
  • Publish at own website & NIC website
  • NIT to Indian Embassies abroad as well as foreign embassies in India
  • Three Weeks time from date of publication of bid


2. Limited Tender

  • Value up to 25 Lac
  • Bid document should be sent to Regd. Suppliers by Speed Post/Regd Post/Courier/ e-mail
  • No. of supplier firms in Ltd. Tender should be more than three
  • Web based publicity

Please note sufficient time should be given in Ltd. Tender


3. Single Tender

  • If only a particular firm is the manufacturer
  • Emergent need to procure from a particular source
  • Technical reason to be recorded (standardization of machinery – HP, SONY etc. )
  • Note that single response to an open bid can’t be termed as Single Tender



Standard Bid Document

  • Instruction to Bidder
  • Conditions of Contract
  • Schedule of Requirement
  • Specifications & allied Tech. details
  • Price Schedule
  • Contract Form
  • Other Standard Forms

 

Earnest Money Deposit

  • To safeguard the interest of Deptt (withdrawal / alter the bid by bidder)
  • Exemption – Regd. With Central Purchase Organisation / National Small Industries Corporation
  • EMD -  2 % to 5% of estimated value
  • Can be DD/ FDR/Banker Cheque /BG
  • Unsuccessful bidders EMD should be returned /refunded at the earliest.


Process at a glance

  1. Estimate (Qty. and Amount)
  2. EOI – Expression of Interest
  3. RFP/RFQ – Request for Proposal / Quotation
  4. PBC – Pre Bid Conference
  5. NIT – Notice Inviting Tender
  6. APPROVAL
  7. WEB PUBLICITY
  8. EMD – Earnest Money Deposit
  9. BIDDING
  10. TOC – Tender Opening Committee (Tech)
  11. APPROVAL